DebtX, a provider of third-party loan valuation services, has announced that the prices of commercial real estate loans underlying commercial mortgage-backed securities (CMBS’) increased in June.
During the month, the estimated price of whole loans securing the CMBS universe rose to 99.9%, up from 98.6% in May and up from 98.6% in June 2015.
As of the end of June, DebtX had priced $953 billion in commercial real estate loans that collateralize U.S. CMBS trusts – up from $942 billion in May. The median adjusted loan-to-value remained at 57%, and the median debt service coverage ratio was 1.49. The median estimated loan yield was 4%.
“CMBS prices rose in June and year over year, but we also saw a slight decrease in the median loan yield,” says DebtX Managing Director Will Mercer. “The downward movement of the Treasury yield curve was the primary driver of the increase in prices.”